Which of the Following Represents a Pricing Strategy That Establishes

question 319

Multiple Choice

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors?

• A)penetration strategy
• B)odd-even pricing strategy
• C)skimming strategy
• D)price lining strategy

---

Definitions:

Social Security Taxes

Taxes collected from employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Income Cap

A limit on the amount of income an individual or entity can receive, often used in tax or investment contexts to limit earnings or tax benefits.

Exemption

Exemption is a deduction allowed by law to reduce the amount of income that would otherwise be taxed. It can also refer to specific types of income or transactions that are legally excluded from taxation.

Terminal Illness

A disease or condition that is deemed incurable or irreversible and is expected to lead to the death of the patient within a short period of time.